Ann: FY18 Results Presentation, page-4

This is a consistently strong result across the board. I like that the Wealth Management EBITDA margin increased from 25% to 30% and that the Funds Management EBITDA margin is 40%. The increase in the Wealth Management margin highlights, as is pointed out by management, the operating leverage of Sonata. Since FY2015 the number of new Sonata clients added each year has been precisely 4. What is needed to accelerate revenues and further extract operating leverage for Bravura overall is to somehow increase the number of new Sonata clients added each year to a higher sustainable number. Management is appropriately conservative or judicious in commenting on this, but it does offer clues as to the operating leverage of Sonata and its other products and services. Nobody would know this better, or have greater leverage to achieving such an outcome, than management. I think it is therefore reasonable to assume that management will seek to achieve this outcome, without explicitly stating so to the sharemarket.

The share price initially got up to $4.25 but has declined to just above $3.80 at the time of writing. This is a good result. But, obviously the market is looking for an acceleration in client wins and revenue growth to give the share price significant further impetus. It seems that with the momentum the company has, and its pioneering Sonata product, this may be achievable and that the risk is it exceeds rather than disappoints the forecast 2019 mid-teens EPS growth forecast. Management therefore has to be said to be doing an excellent job for shareholders.